Beta 1

How to sell 50 Alfa Laval CIP units in 2015 on the North American market

Author

Lomborg, Sofia (Copenhagen University College of Engineering, IHK)

Supervisor

Flyger, Charlotte StisenPetersson, Claus

Institution

Ingeniørhøjskolen i København, IHK, DK-2750 Ballerup, Denmark

Thesis level

Bachelor thesis

Education

Diplomingeniør, Eksport

Education

Bachelor of Engineering

Publication date

2011-12

Abstract

This dissertation has the purpose of investigating what it will take for Alfa Laval to achieve an increased sale on the North American market, in order to be able to sell 50 CIP units in 2015. The empirical data for these investigations comprise of both primary information from interviews and conversations/discussions with relevant employees in Alfa Laval, as well as secondary information from the company’s webpage and share point, sales statistics and technical specifications. These data have been used to analyse both the product and market with theoretical models as framework to fully understand the current situation.The investigation has found that the current approach towards the market is not generating much sale, as the marketing strategy has presented itself to be very weak and the sales personnel are reluctant to sell the product. It has been found that price is a serious issue in this matter, as it is regarded as too high, but also the fact that the company has not made the product visible to customers presents a problem. In Canada they have taken matters into their own hands and changed their marketing strategy towards offering CIP service rather than selling CIP units, and promoted it to potential customers with great success.The technical aspect of the products has also shown issues, and it should be decided what kind of vision there shall be for the product, in order to upgrade/update the design to better fit the customers.The challenge for the future is to define a vision for the product that fits into the company strategy, and to decide how to sell the product, as a unit or a service or perhaps even as components. Afterwards, a customer analysis is to be made, in order to be able to present the right product to the customers. Also, a clear marketing strategy is needed and it seems that the differentiation strategy can also be recommended for the future, as well as considerations about price elasticity when fixing a price, but more promotional work is needed to create awareness of the product. Further investments into the CIP unit, to attempt to increase sales, fit well into the new overall strategy for the company which is why there should be no reason not to want to develop it further.If Alfa Laval continue analyses regarding this product and plan the future of the CIP unit from the results of their own analyses and the proposed solutions, they will be two steps closer to achieving an increased sale of 50 units in 2015 on the North American market.